Value Assessment

Return on Investment Benefits Cin7 Offers

The following testimonies were retrieved from the Cin7 website, and in turn revealed numerous tangible benefits Cin7 has provided their companies with. Unfortunately, it is rather difficult to assign a monetary value to each of these benefits since we personally do not have access to Kaffeagroup, Kereru Brewing, and The Spice and Tea Exchange’s financial statements. Neither their before and/or after statements are available. However, It is worth mentioning that because of the implementation of Cin7 into Kereu Brewing’s business model, they have been able to continually grow their production size (Kereru Brewing Case Study, n.d.). Kereru’s original kitchen operation, which opened in 2010, topped capacity at 100 litres a week. In 2014 production grew to 150,000 litres, and their 2016 production reached 250,000 litres. CIn7 offered their company a way to easily track their current inventory, who their customers were, their costs, amongst many other benefits (Kereru Brewing Case Study, n.d.). Kaffeagroup credits their ability to reach over four million dollars per year to Cin7 (Kaffeina Group Case Study, n.d.). Key elements of the system that contributed to their success included the one system meets all needs, cloud capabilities, flexible pricing module, and Xero accounting infrastructure (Kaffeina Group Case Study, n.d.). The Spice & Tea Exchange company provided no numerical measurements throughout their case study (The Spice and Tea Exchange Case Study, n.d.).

Kaffeinagroup (B2B Portal) (Kaffeina Group Case Study, n.d.)

Enabled Store Scalability

Saved Staff Time

Improved Customer Service

One Central System

Kereru Brewing (Wholesale, Manufacturing) (Kereru Brewing Case Study, n.d.)

Understand and Manage Production Costs

Gained Full Inventory Awareness

Gained Insight of Customer Sales Activity

Increased Efficiency and Reduced Manual Work

Gained Insight for Better Demand Planning

Grew Sales Without the Need for New Staff

The Spice and Tea Exchange (Retail) (The Spice and Tea Exchange Case Study, n.d.)

Comprehensive View and Control Over Complex Supply Chain

Less Expensive and Easier to Use and Implement Than $200,000 ERP System

Order Processing Time Cut Down by A Day

One System Instead of Three to Process and Track Purchase Orders

Streamlined Processing for Production and Warehouse Staff

Batch Tracking Gives Chain-of-Custody Quality Assurance

Cin7 System Implementation into WANT NOT
Project costs	Investment
Starter Plan (Base Cost)	($299/month)
User Fee (4 Users)	($180/month)
Installation	(1)
Training	(2)
Computer Hardware (laptop for each employee)	($2000)
Total Costs	($2,409+/month) ($7,748+/year)
Benefits	Savings
Staff time saved	($9,100/year)
Labor cost saved	($100,000/year)
Multiple platform fees saved	($3,000/month) ($36,000/year)
Client satisfaction sales increase	At least 25%
Total Savings (excluding client satisfaction)	($145,100/year) ($137,352/year - costs)
Total Savings (including client satisfaction)	($108,825/year) ($101,007/year - costs)

        (Knight, n.d.)

(1)  Cin7 appoints a project manager to your account. They are responsible for the migration and integrations of your input. Cost is based on a case by case pricing system.

(2)  Your project manager from Cin7 will facilitate multiple hours of training on the system based on your workflows. Cost is based on a case by case pricing system.

WANT NOT: Farm to Health plans to pay the monthly cost of $229 for access to the Cin7 software, and then another $180 per month for employee access to the system. Reviews for Cin7 indicate a myriad of intangible benefits that will offset both the initial cost and the monthly costs of using Cin7 as WANT NOT: Farm to Health’s ERP system. Intangible benefits are those that cannot be measured in monetary terms, yet still result in increased productivity for the firm. Some examples of the intangible benefits of utilizing Cin7 are: staff efficiency and time management, quality assurance, customer data tracking and analysis, customer service, business scalability, and streamlined processes for managing inventory, purchases and production, all which are benefits of an ERP system (Gallaugher, 2016, Chp. 13).

WANT NOT: Farm to Health is a new company, and the four founding employees do not have the experience or skills to design and build our own enterprise IT infrastructure, hence using an ERP. Subscribing to the service (aka renting) will outsource these costs and skills to experts, who can also guide us for next best steps for software growth (front and back end), while allowing us to focus on the business (Gallaugher, 2016, Chp. 14; Kaniyar, Peters, & Vogelgesang, 2015).

However, using an EPR versus a private enterprise system does have its downsides. WANT NOT: Farm to Health is relying on Cin7 to maintain network security so our customer’s data is kept safe, for example. Additionally, Cin7 must also remain on top of IT and digital trends and innovations to ensure their infrastructure remains competitive and up to date, which will then translate into WANT NOT: Farm to Health remaining competitive as well. Nonetheless, WANT NOT believes the intangible benefits (such as quality assurance, ease of use for customers and staff, and efficiencies in time and report making) are well worth the monthly costs of approximately $700 as we build our business.

Resources:

Gallaugher, J. (2016, July). Information systems: A manager’s guide to harnessing technology (5th ed.). Flatworld Publishing.

Kaffeina Group Case Study | Inventory Control. (n.d.). Retrieved October 19, 2017, from https://www.cin7.com/customers/case-studies/kaffeina-group/

Kaniyar, S., Peters, P., & Vogelgesang, U. (2015, May). Transitioning to standard software: Lessons from ERP pioneers. Retrieved October 22, 2017, from http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/transitioning-to-standard-software-lessons-from-erp-pioneers

Knight, J. (n.d.). HBR Tools: Return on Investment (ROI). Retrieved October 19, 2017, from https://hbr.org/product/hbr-tools-return-on-investment-roi/TLROI1-ZIP-ENG

Kereru Brewing Case Study | Brewery Inventory Management. (n.d.). Retrieved October 19, 2017, from https://www.cin7.com/customers/case-studies/kereru-brewing/

The Spice and Tea Exchange | Franchise Perfects a Unique, Full Sensory Shopping Experience. (n.d.). Retrieved October 19, 2017, from https://www.cin7.com/customers/case-studies/spice-tea-exchange/